Hi All,
I need some opinion or suggestion from all of you expert.
my wife and I are currently owning a unit (purchase price $250k 3years ago). We are looking for a bigger house (around 450-500k) for a growing family and I am thinking of either:
1. renting out this unit while we live in the new place or
2. selling it and use the equity to fund our new primary place so we can keep the repayment smallMy question is which one should I choose?
If I choose the first one, can I use the equity of the unit to fund my primary home? What implication would this choice be? Is there any pros and cons in using equity of investment place to fund primary home?
My goal is to start investing in property, but my understanding is I have to choose option 2 which is sell this unit and move all the equity to my primary home, only then i can start investing using my primary home equity to invest.
Please help me shed light on this.
thank you.
Kind Regards,
Free@lastHi FAL,
You'd be better off, buying the new house as the investment property, making all the changes you wanted to make ( i.e making it livable – or to the standards of a Palace…) Depreciating the cost of improving the investment property for the first year, then sell this Unit ( On which you will not pay CGT )
Further, when the time comes to sell the house you are living in, depending upon the amount of time you spend in the house you might not be up for CGT at that time either!
BOL,
Orrin
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